Rates and Regulations

A change in the electric fuel cost adjustment (ECA) was approved by City Council on December 9, 2008 and will go into effect on January 1, 2009. A change in electric, water and wastewater base rates was also proposed. A public hearing for the base rate changes is scheduled at City Hall at 1 p.m. on January 13, 2009. If approved on January 27, new base rates will go into effect February 1, 2009.

The tables below provide examples of average residential monthly bill amounts. The “new” amounts reflect the impact to your bill due to both the new ECA and the proposed base rates. Keep in mind that no home is exactly “average”. Your home’s energy and water use, and therefore your bill amount, will likely be higher or lower.

Changes to monthly bill amounts – average mid-winter residential utilities use

Changes to monthly bill amounts – average year-round residential utilities use

View the 2009 Rate Case Filing. A hard copy of the filing is available for review at the City Clerk's Office, 30 S. Nevada Ave.

If you need help paying your bill
Depending on your situation, you may qualify for financial aid. Whether it’s our customer-supported Project COPE or our partnership with state and federal agencies like LEAP and HEAP, we can help you manage your utilities bills. For additional information and referral services, call 2-1-1.

What you can do to control your bill
Use these simple energy- and water-saving tips to reduce your utility bill by up to 30 percent.

1. Keep your thermostat at 68 degrees or lower in the winter.
2. Turn off lights and electronics in empty rooms. Lighting accounts for 10% - 15% of your bill.
3. Replace old light bulbs with compact fluorescent light bulbs. CFLs use 70 percent less energy than incandescent bulbs. Springs Utilities is partnering with Home Depot, Ace Hardware, Bulbs Plus, Costco and Sam’s Club to bring you 25% to 75% savings when you buy CFLs.
4. Wash only full loads of dishes and laundry. You'll not only save water, you'll save energy too.
5. Use the sun and window coverings to control the temperature in your home. Open window coverings on sunny days to let in the sun's warmth. Close them at night to keep the cold air out.
6. Check toilets, water faucets and pipes for leaks to save thousands of gallons of water.
7. Install a low-flow shower head. You’ll save up to 5 gallons per minute over traditional shower heads.
8. Take shorter showers. You’ll save on both your energy and water bills.
9. Set your water heater temperatures no higher than 120 degrees.
10. Seal leaks and cracks, especially around windows and doors. Caulking and weather-stripping reduces uncomfortable drafts and lowers energy bills.

Make your home more efficient and get the green back
We offer rebates ranging from $15 - $200 for purchases of qualifying energy- and water-efficient home improvements, including clothes washers, WaterSense toilets, furnaces, insulation and air sealing, programmable thermostats, and windows. We are partnering with local retailers to give you a big discount on energy-saving compact fluorescent light bulbs.

Sign up for Budget Billing: Budget Billing allows residential customers to pay the same amount on your utilities bill each month, which helps alleviate the effects of fluctuating energy prices by spreading costs evenly throughout the year. Call us at 448-4800 or visit csu.org to learn more.

What we’re doing to keep costs down

Reducing our workforce
Using improved processes, automation and leveraging new technologies, we are reducing the number of positions at Springs Utilities. Based on a thoughtful, planned approach started two years ago, we are reducing our workforce by 200 positions over five years. We have already eliminated 92 positions, and we plan to eliminate 60 positions in 2009.

Making cuts across the organization
In 2008 we closed the call center on Saturdays to reduce labor costs, implemented a selective hiring freeze, reduced temporary and agency staff, reduced funding for conservation communication, decreased funding for non-profit organizations and used automation and technology to reduce costs organization-wide.

Reducing capital project costs
Re-evaluation and restructuring of planned projects will reduce capital spending by an estimated 20 percent ($320 million) over five years.

Natural gas pre-pay
This year we issued bonds to pre-pay for a portion of our community’s future natural gas supply. Whether the price of natural gas goes up or down, the agreement means residential customers will pay $1.75 less a month compared to costs without the agreement. Total savings are $150 million over 30 years.

What’s driving higher costs?

Slumping housing market hurts water and wastewater revenues
For each new home that’s connected to the system, builders pay about $9,000. For many years, these development fees provided a significant portion of the revenue required to operate the water and wastewater systems. With just one-quarter of the homes being built compared to three years ago, our revenues for water and wastewater service have plummeted. Meanwhile, our costs to provide reliable water and wastewater services continue to climb. Without an increase in rates, we would see a shortfall of over $40 million dollars in 2009.

Construction material costs skyrocket
Our cost to maintain and repair pipes, plants and wires has gone up dramatically. The cost for water pipe, steel and electric transformers have nearly doubled in the last five years. The cost of copper has tripled. With increasing demand from countries like China and India, we expect costs for these and other commodities to continue upward.

Maintaining an aging utilities system
Many of the pipes, plants and wires are over 50 years old. They are nearing the end of their useful lives and must be replaced or overhauled. Without considerable expenditures on maintenance, the reliable energy and water service you’ve come to expect would not be possible.

Investing in our community’s future
While the economy has slowed this year, we expect the population in Colorado Springs to continue to climb, Large utility projects can take years - even decades to complete. That’s why we need to invest in planning, system design, engineering and construction now so that infrastructure will be in place when needed.

Environmental regulations increase costs
We need to fund pollution control alternatives at the Drake Power Plant in response to proposed federal permit and regional haze rules. New ultra-violet disinfection is required at the Las Vegas Wastewater Treatment Plant in response to new permit limits. Sanitary sewer creek crossings and wastewater pipe rehabilitation continue to require significant investments to comply with state orders and wastewater release commitments.

Covering our expenses, dollar for dollar
Colorado Springs Utilities is a not-for-profit entity. We collect only enough revenue from rates to pay for the cost to provide service. In fact, our customers pay some of the lowest energy bills in the entire nation.